The Biden-Harris Administration has unveiled plans to invest more than $5 billion in semiconductor-related research, development, and workforce initiatives, signaling a significant step towards bolstering U.S. leadership in the semiconductor industry. This substantial investment, allocated under the CHIPS and Science Act, aims to address critical challenges and opportunities in semiconductor innovation, manufacturing, and workforce development.
Despite being the birthplace of semiconductors, the U.S. currently accounts for less than 10% of global semiconductor production, with none of the most advanced chips manufactured domestically.
Historically, federal investment in research and development (R&D) played a pivotal role in driving American innovation. However, in recent years, the government’s investment ratio in R&D has declined below 1% of GDP.
The CHIPS and Science Act aims to reverse this trend by making historic investments in semiconductor manufacturing, R&D, and workforce development.
The Act includes a $11 billion funding package, which encompasses programs such as the National Semiconductor Technology Center (NSTC), the National Advanced Packaging Manufacturing Program (NAPMP), the CHIPS Metrology Program, and the CHIPS Manufacturing USA Institute.
The NSTC, established as a Public-Private Consortium, will receive significant investment to support the design, prototyping, and piloting of cutting-edge semiconductor technologies.
It aims to foster collaboration among various stakeholders, including government agencies, industry partners, educational institutions, and workforce development organizations.
The administration plans to invest hundreds of millions of dollars in workforce efforts, including the creation of a Workforce Center of Excellence.
Initiatives will focus on establishing equitable training pathways, convening stakeholders, utilizing data-driven approaches, scaling proven education and training programs, and piloting new efforts to engage underserved communities.
Commerce intends to invest in a CHIPS Manufacturing USA Institute to develop a semiconductor manufacturing digital twin institute, aiming to reduce chip development costs and accelerate innovation.
Additionally, funding will support R&D activities in advanced packaging and substrate materials, as well as projects addressing common needs in the microelectronics industry through the CHIPS Metrology program.
The Biden-Harris Administration’s announcement marks a significant commitment to revitalizing America’s semiconductor industry through robust investments in research, development, and workforce initiatives. By leveraging public-private partnerships and fostering innovation ecosystems, the administration aims to strengthen U.S. semiconductor leadership, enhance national security, and create opportunities for economic growth and job creation.
Source: Based on information from The White House.